As per title.
Anyone have any experience negotiating the rate on Fixed Rate Mortgages? I know the variable is very often negotiable, but not sure on fixed, as the bank sub-contracts your loan with the up-stream lender, as far as i know.
Any advice here?
For example, UBank are offering a 3-year fixed for 1.75%. Could i netotiate with them to 1.70% or lower? Could a broker do a better deal on that specific homeloan?
thanks!
No
They aren't. Brokers can't do a better deal either.
I've previously had a small (0.06%) reduction on an advertised fixed rate through a broker. But generally banks don't have much room to move on fixed rates.
thanks guys, really appreciate the insights
Unfortunately mortgage brokers are the only ones that get better rates. Basically, they get a commission from the bank for the life of the loan for finding you a cheaper rate, which is kind of non-sensical.
I don't see why they can't remove the middle man (mortgage broker) and just offer the cheaper rate from the start.
And before someone starts that they need someone to do the shopping around, it's what the internet's for.
Literally 100's of comparison sites that show the exact information you need, sort loans lowest to highest rate and boom
It's so stupid.
ive been able to negotiate a discount by talking to a bank directly, previously, although it was a relatively small discount for a variable rate product
There is no way brokers can do lower than UBank's 1.75%.
Brokers are just good for if you have a complex case (mine told me to not bring overseas investment property into it otherwise there will be a mountain of paperwork).
Some banks if they have the expertise can be just as good. I got a mortgage with a big overseas bank on an investment property no problems, they took my Australian bank statements, IP income no worries.
Years ago I tried the other way around with buying a property in Australia while working overseas and it was like walking through a forest of razor blades would be more comfortable. I even tried with a broker and they couldn't make it work (there is so many people begging for money here already they don't need your business).
My overseas standard variable is only 1.99% no quibbles with annual fee of $300 to lock it in and no account keeping fees.
The banks are happier to deal with a few brokers instead of a million individual customers. They don't make less money from brokers; they basically charge extra to answer our (sometimes reduntant) questions.
Yes. My broker got me .12% off (2019, CBA)
Yes. Fixed rates are negotiable. It all depends on LVR, your negotiating skills and persistence…although less than 1.75%…you might need the negotiating skills of a con artist.
I tend to get better deals about the time I ask them to email me the discharge papers. Just like Telstra offer you deals when you ask to be disconnected…
Ask them.
thread closed…